Which of the following would be classified as an internal failure cost on a quality cost report?
A) Final product testing and inspection.
B) Warranty repairs and replacements.
C) Depreciation of test equipment.
D) Debugging software errors.

Question

Quizplus · Accepted Answer

Debugging software errors is an internal failure cost as it occurs within the organization's processes and is a cost of correcting defects before the product reaches the customer. Final product testing and inspection would be classified as a prevention cost as it is a cost incurred to prevent defects. Warranty repairs and replacements would be classified as an external failure cost as it is a cost incurred to correct defects discovered after the product has been delivered to the customer. Depreciation of test equipment would be classified as an appraisal cost as it is a cost incurred to evaluate the conformance of products to quality standards.

Which of the Following Would Be Classified as an Internal